There’s a consensus that Nintendo forever changed the video-game industry when it launched the Wii in 2006, since, even with its simple graphics and thin library of “hardcore” games, it quickly eclipsed sales of the PS3 and Xbox 360.

One gaming exec says that the iPhone is an even bigger game-changer. Ngmoco founder and chief executive Neil Young kicked off the Game Developers Conference by saying that the launch of the iPhone was as big a gaming milestone as the launch of the first Nintendo (other-otc: NTDOY.PK - news - people ) console, the Game Boy, Xbox Live and even the first massively multiplayer online game (via Wired).

Ngmoco is an iPhone games publisher, and the San Francisco-based company just picked up $10 million in a second round of funding—so Young has a vested interest in generating buzz about iPhone games. But Kotaku notes that he backed up his bold claim with some evidence:

—The iPhone is expanding the mobile-gaming market: Apple (nasdaq: AAPL - news - people ) has sold more than 17 million iPhones worldwide, so there’s no need for people to buy another device like a PSP or Nintendo DS. The user base runs the gamut from tech-savvy teens to business executives, which means a greater interest in a wider variety of games. And they’re also ravenous for apps: people have downloaded more than 800 million apps in the eight months the App Store has been open.

—The open platform is a game developer’s dream: Apple’s basic developer kit costs $99, meaning individual publishers can quickly create a game, get it into the App store and scale it out on their own. There’s no need to jump through the hoops that have historically made creating games for companies like Sony (nyse: SNE - news - people ) and Nintendo more difficult.

That’s partly what has enabled startups like Tokyo-based Genkii to turn a simple feature, like enabling Second Life users to send IMs to each other through the iPhone, into the potential for a standalone iPhone-based virtual world—complete with avatars, virtual currency and streaming audio (via TechCrunch).

The iPhone has limitations as a gaming device, just like the Wii (or the Xbox 360 or PS3, for that matter): The low barrier to entry means that lazy developers can quickly put out poorly functioning games—and if iPhone owners pay for one too many disappointing game apps, they’ll stop buying. There’s also too much clutter: with more than 25,000 apps, even very good games may find it hard to get noticed (without the bump of being featured in an iPhone commercial).

So, whether the iPhone will evolve into a gaming platform that ultimately overtakes the Wii is still up in the air, but it’s clear that Nintendo (and even Sony) have taken notice: both companies are pushing game downloads as the next hot thing for their portable gaming devices now, with new announcements expected to roll out over the next few days at GDC.

The new online gaming service lets players stream games on computers and TVs.

Microsoft and Sony will talk up their console-centric home entertainment plans in back-to-back keynotes at CES.

The Nintendo Wii is good. Accessories make it great.

In Pictures: Why You Need Wii Accessories

Mom bought you an Atari when you were a kid. Now you've decided to return the favor and buy her a Wii.

Clever. Not only does this thing boast games your Mom will love--hey, you can't even get "Gears Of War" on this thing--it gives Mom the tools she needs to make Grandma time a hit, every time.

Plus stashing the family console at Mom's house means you can splurge on a few accessories for the gang, without turning the kids into spoiled videogame junkies. And the Wii's group-friendly games means Mom can always join in the fun.

In Pictures: What Your Wii Needs

Other consoles have long sported eccentric accessories, of course. Steel Battalion, for the Xbox included a yard-wide game controller complete with foot pedals, a gear-shift and an eject button. PC games sport options that are even more outlandish. Aviation enthusiasts, for example, can buy everything from a simple stick and rudder for their virtual planes to elaborate plastic cockpits. It doesn't get much geekier.

The Wii's best accessories, however, are different because they build on the original Wiimote controller's motion-sensitivity to make videogames about much more than mashing buttons and wiggling joysticks. In fact, combining family-friendly games with motion sensitive controls has turned a once geeky pastime inside out.

Take the Wii Fit. The kit includes a balance board that allows adults to master basic yoga, track their weight and improve their balance. And it makes other games, like the "Wii Ski" a blast not just to play, but at parties where you can watch your friends try to shimmy their way down virtual ski slows.

In Pictures: 10 Top Games For The Wii

Sorry to spoil Santa's secret, but at least 2 million of you will wake up during the holidays to discover you're the proud owner of a shiny new Wii. During November, Nintendo sold an unprecedented number of consoles, reports the NPD Group, driving the total population of Wiis in the U.S. to 15.4 million. Nintendo's waggle-controlled consoles are now owned by some 20% of the U.S. population.

And of course you want a Wii; it is only the hottest holiday wish-list item since Hypercolor tees. And with the Wii's widespread appeal--bringing family members of all ages together for bouts of virtual tennis or bowling--its an easy gift everyone will enjoy. Kids want to be blasting away at on-screen targets with the Wii Zapper. Friends want to share their "Animal Crossing" experiences, live, over the Internet with the chat-capable Wii Speak. We all want to design our own Mii so we can watch its body inflate and deflate as we progress through "Wii Fit's" workout regimen.

It is not just the console, though, whose sales are soaring. The past two years have been a Battle Royale of sorts as consumers have stalked UPS delivery trucks and harassed GameStop (nyse: GME - news - people ) employees in the hopes of snagging an all-too-scarce Wii. With the steady influx of new owners, every old Wii game is new again. Unlike most videogames that, at best, have a three-month retail shelf life, six-month old Wii games still top the monthly best-sellers lists.

Personal trainer "Wii Fit," which was released last May, sold 697,000 copies this November. "Wii Play" is over a year old, but sold almost 800,000 units last month--rivaling sales of Microsoft's (nasdaq: MSFT - news - people ) Xbox 360. The six-month old "Mario Kart" sold over 600,000 copies. Conversely, the new "Guitar Hero: World Tour" sold less than half a million copies on the Wii.

"We are seeing a new paradigm where titles such as 'Wii Play' continue to perform in the top 10 month after month," says Cammie Dunaway, Nintendo of America's executive vice president of sales and marketing. "With so many new consumers discovering videogames, these titles are something they haven't experienced." Even "Wii Music," which had disappointing sales at launch, is "picking up steam," Dunaway says. That means Nintendo (other-otc: NTDOY.PK - news - people ) games are no longer constrained to the narrow "launch window" demand curve that the industry thought governed most videogame sales. And it puts Nintendo in the position of trying to craft new retail strategies to ensure its games remain visible amidst all the new titles popping out for the Wii.

That explosion of games creates something of a dilemma for new Wii owners. Some 306 games were released for the Wii console in 2008 compared to 264 for the Xbox 360 and 201 for the PlayStation 3, according to EEDAR's GamePulse database. This glut of content--much of which isn't very good--makes buying a Wii game a leap of faith. Publishers want to capitalize on the growing audience of Wii gamers, but few outside of Nintendo have learned how to make a good Wii game. The average review score for games on the console is 62 out of 100.

Nintendo products top Amazon's list of videogame best sellers.

You are going to get sick of hearing it: Videogames are recession proof. According to comScore, spending on videogame consoles, games and accessories also increased 9% during the first week of December. Meanwhile, sales of other home entertainment mediums--music, movies and videos--declined 24%. (See "Cyber Monday's Electronics Bonanza.")

What videogames grabbed the attention of budget-conscious consumers? Here were the hot sellers on Amazon.com (nasdaq: AMZN - news - people ) on Dec. 1, also known as Cyber Monday:

1. Midway's Game Party (Wii)

2. Wii Remote Controller

3. Wii Nunchuk Controller

4. Nintendo DS Limited Edition Pink Ribbon

Stop wasting money: video games and energy efficiency

      

 

Demand for the game console is still strong despite the down economy.